The much-awaited Hyundai Motor India IPO has officially opened for subscription in the Indian stock market today, marking a significant moment for investors eager to invest in one of the country’s top automobile companies. The Initial Public Offering (IPO) will remain open from October 15 to October 17, 2024, allowing investors three days to place their bids. Let’s break down the key details of this IPO in simple terms to help investors make informed decisions.
Price Band and Offer Details
Hyundai Motor India has set the IPO price band between ₹1865 to ₹1960 per equity share. This means investors have the option to place bids for shares at prices falling within this specified range. The company aims to raise ₹27,870.16 crore through this public issue. It’s important to note that this IPO is an Offer for Sale (OFS), which means the proceeds from the sale will go to the selling shareholders rather than the company itself. Therefore, Hyundai Motor India won’t receive any direct financial benefit from the funds raised through this IPO.
One of the key indicators for IPO performance is the Grey Market Premium (GMP). As of today, Hyundai Motor India shares are trading at a premium of ₹65 in the grey market. GMP reflects the difference between the expected listing price and the current grey market price. While this is just an early indication, it gives investors an idea of market sentiment toward the company’s shares before the official listing.
The Hyundai Motor India IPO has seen some early interest from investors. On the first day of bidding, the overall subscription was at 0.03 times, with the retail portion subscribed 0.05 times and the Non-Institutional Investors (NII) portion subscribed 0.03 times. As the subscription period continues, these numbers are expected to change as more investors place their bids.
Key Dates to Remember
Here are some important dates related to the Hyundai Motor India IPO:
- IPO Opening Date: October 15, 2024
- IPO Closing Date: October 17, 2024
- Allotment Date: The share allotment is likely to take place on October 18, 2024.
- Listing Date: The shares are expected to be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on October 22, 2024.
Lot Size and Minimum Investment
For those interested in applying, the lot size for the Hyundai Motor India IPO is seven shares. This means that investors must apply for a minimum of one lot, which consists of seven shares. If you wish to apply for more, you can do so in multiples of seven. Depending on the final price decided during the bidding process, investors will need to invest between ₹13,055 and ₹13,720 for a minimum lot.
The official registrar for the Hyundai Motor India IPO is KFin Technologies, a well-known registrar that will handle the share allotment process and investor queries. The company’s shares are expected to be listed on both the BSE and NSE following the successful completion of the IPO process. The listing will follow the ‘T+3’ rule, meaning shares will be listed three days after the finalization of the allotment.
Should You Apply?
Investing in an IPO is a personal decision and depends on factors such as your investment goals, risk tolerance, and market research. The Hyundai Motor India IPO has attracted attention, especially given its strong position in the Indian automobile market. However, as with any investment, it’s essential to review the company’s fundamentals, the IPO prospectus, and the market sentiment before making a decision. Consulting with a financial advisor can also help you make a well-informed choice.
The Hyundai Motor India IPO offers an exciting opportunity for investors looking to invest in the automobile sector. With a price band of ₹1865 to ₹1960, a grey market premium of ₹65, and a significant fundraising goal of ₹27,870.16 crore, it’s clear that this IPO has generated buzz. Investors should keep an eye on the subscription status over the next few days and carefully consider their investment strategy before applying.
